FDP launches campaign to block proposed VAT rise for AHV funding

On Monday, the Freisinnige Demokratische Partei started its opposition drive ahead of a November vote on a proposed VAT hike. The party contends that the additional 0.4 percentage points would burden both families and SMEs, especially retailers and restaurants. Parliament has approved the rise to fund the 13th AHV pension installment. In Bern, FDP leaders referenced a BAK Economics analysis that predicts a decline in growth over the next decade. They argue that the government should reduce spending rather than increase the tax burden on citizens, and they are urging structural reforms to address fiscal needs.